Oracle’s Future Does Not Look Bright

Legal struggles and failing technicals spell trouble for ORCL

Oracle Corp. (NASDAQ:ORCL) — Lawsuits with Google (NASDAQ:GOOG) and Micron Technology (NASDAQ:MU) have been a major distraction for Oracle’s management. Its sales growth and earnings momentum have fallen. But as Louis Navellier, editor of Blue Chip Growth, says, “What really keeps this stock down is its depressed level of buying pressure.”

Technically ORCL is in a bear market. Each attempt to rally falls short of holding above its 50-day and 200-day moving averages. Volume has also been a strong negative.

On Friday, a jury deliberating the first of Oracle’s two-part claim against Google failed to reach a verdict in the company’s $1 billion claim. This is likely to drag on for weeks while the technology stocks are slipping into decline.

It you own ORCL, sell at the market, but traders may desire more aggressive leveraged strategies using puts, etc. The downside target for traders is $24.50, but a break there could take it into the teens.